(Reuters) -U.S. utility Entergy surpassed analysts’ estimate for first-quarter profit on Tuesday, helped by strong demand for power and lower costs.
The U.S. Energy Information Administration expects power consumption in the country to reach record highs in 2025 and 2026, driven by rapid expansion of data centers dedicated to artificial intelligence and cryptocurrency, and as homes and businesses use more electricity for heat and transportation.
Power demand from U.S. data centers is expected to nearly triple by 2028 and could consume roughly 12% of the country’s electricity, according to a Department of Energy-backed study.
Entergy’s residential sales rose 13.2% to 8,784 gigawatt-hours in the January to March quarter, while industrial sales climbed 9% to 13,833 GWh.
Entergy provides electricity to nearly 3 million customers across Arkansas, Louisiana, Mississippi and Texas.
The New Orleans, Louisiana-based company posted an adjusted profit of 82 cents per share for the three months ended March 31, compared with analysts’ average estimate of 69 cents per share, according to data compiled by LSEG.
Its total revenue rose nearly 2% to $2.85 billion during the period, driven by higher electric and natural gas sales. Total operating expenses fell 16% to $2.15 billion.
The company also reaffirmed its full-year 2025 adjusted profit forecast of $3.75 to $3.95 per share. Analysts expect Entergy to post an annual profit of $3.87.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Shilpi Majumdar)
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